There are many discussions regarding the use of online travel agents (OTAs) for business travellers and so-called open booking versus using a classic TMC with good online tools (sometimes offered through a third party provider). In the market we can also see OTMC —an OTA with the focus of corporate travel and their needs. One thing to agree is that there is no argument about the fact that business travellers want to book online as much as possible.
The advantages of booking through a TMC or going through an OTA really depends of the company structure, company policy, travel volume, frequent destinations and suppliers. The advantages can also differ from a company view versus a traveller view and between frequent and non-frequent travellers.
What OTAs offer that classic TMCs don't
One of the main differentiators, and attractions of booking through an OTA, is the usability of the websites. OTAs know that if they have not displayed what the traveller wants in approximately five seconds many travellers will leave and go to a competitor's homepage. Business travellers will book through a TMC tool even with the poorest uploading or usability because it is company policy or they know it will be company-paid through this channel. However, they might not believe it is a good online tool and not allowing a space to voice this opinion will not push development in usability.
OTAs have to think about usability first as they have no relationship with their customers. It means the online offering needs to be self-explanatory, easy to use and show a clear overview before confirming the booking. TMCs usually need to offer some training for travellers to understand how to use the online tool the best way.
Business travellers are also leisure travellers and are used to doing searches in OTAs — they find these tools easier to use and find good solutions in content, price and search display. There are also good itinerary solutions and destination information.
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OTAs have to be easy to use straight away, otherwise they lose customers ©alexsl/iStock
OTAs have created the impression of being cheaper. There is a lot of competition and promotion between OTAs and metasearch websites that might give the impression that this type of website is cheaper to book through. But in doing a benchmark comparison on the final price between OTAs and TMCs, the OTA rate is no more favourable than the TMCs'.
This illusion is helped by the larger product variety that the OTAs have. OTAs display content from different sources where the classic TMC is often presenting only what the GDS has to offer. Content is really key for business travellers as well.
On top of this many OTAs are offering credits/bonus to their customers, meaning that the more you buy the more you benefit. Along with the suppliers frequent user programmes it means that if you are a frequent business traveller you will earn a lot. When it comes to the OTAs these rewards can be used for leisure travel since you are using the same profile for business and leisure travel. An OTA is for all travellers — no matter the purpose of the trip.
What TMCs offer that OTAs don't
If a company is looking to drive compliance and tempt in 'maverick bookers' then they would need to consider these points when asking them to use a tool offered from the TMC. There are also several other benefits to booking through a TMC.
1. Using a TMC's online tool means there is 24/7 customer service with great know-how, high quality, native speaking with good local competence and a relationship with the company and its travellers. The customer service team has deeper knowledge regarding specific companies and travellers. They are easier to reach (approx. 20 seconds) and could also handle more complicated trips with many stops. Also the customer service team is there to find new options for travellers during the trip and in case of strikes, involuntary changes and cancellations.
2. There is more choice in prices. In these tools you can compare corporate/negotiated rates with public fares. The corporate rates might not be cheaper but has better conditions and are safe choices for the traveller — so they could be the most valuable.
3. Invoicing by travel account/lodge card or by the TMC eases travel expense administration. The bookings are company paid/paid post-trip (including hotels) meaning the traveller does not need to use their own credit card. The company gets their predefined invoice structure (including possibility to reclaim VAT) with references and reconciliation for an efficient administration in their finance systems.
4. You get what you see in the TMC online tool. There are usually no add-ons after the first price display — especially not from the TMC.
5. The company site will be customised with the company policy setting, group structure, payment setup and preferred suppliers with possible corporate rates and SSO logins.
6. Different roles and profiles can be set up such as traveller, travel arrangers (who book for others with the traveller's profile) and approvers.
7. TMC tools can produce a booking overview even if booked offline.
8. Profiles and bookings are synchronised between online, mobile and customer service.
9. Changes and cancellations can be made online and also delayed ticketing is offered with the ticket issued following airline rules so there is some extra time for cancellations without charges. Also unused tickets are search for and refunded automatically if possible (taxes are refundable most of the time if the ticket is unused).
10. Reporting is easier through a TMC tool and whatever is booked will be reported back to the company. Through account management this will be analysed to give feedback to the company where there is possibility to improve travel costs also in comparison with peer companies or industries. The reporting could also give information regarding savings or lost savings according to policy. Today there are many data consolidation companies who offer full reporting also using different sources by collecting data from travellers' itineraries, which could also be used by the TMC (or companies booking at OTAs) for 'maverick buyers'.
11. Duty of care and knowing who is where is easier to track through the TMC. Travelling to unsecure areas is a fact for many travellers today. We all know that it's extremely important that your company knows where travellers are in real time and can help in case of emergency.Besides big crises in different countries your travellers are also affected by strikes and cancellations. The TMC gives you tools to know in advance who will be affected by a strike announced for the following week.
I believe the 'fight' between OTAs and the TMC online tool will really stand between usability, customer service, company negotiated rates (if still preferable), content and company payment/invoicing. The winner will be the travel provider who could serve its customers with a combination of the benefits from types of firms; actually being both an OTA and TMC - an OTMC (online TMC).